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Forex - Australian dollar weaker ahead of China inflation data

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Investing.com -

Investing.com - The Australian dollar trended weaker ahead of key China inflation data while the Japanese yen was flat in early Asian trade on Tuesday.

AUD/USD held at 0.9345, down 0.11%, while USD/JPY traded at 102.52, down 0.01%.

China releases CPI and PPI for May at 0930 Beijing (0130 GMT). The previous month saw at 1.8% rise for the CPI, and a 2.0% fall for PPI.

In Australia, the NAB Business Survey for May will be released (1130 Sydney, 0130 GMT). The conditions index was last at flat in April, with Confidence at plus 6.

At the same time, Australian housing finance data for April will be released, with the market expecting a small rise of 0.2% month-on-month after a surprise 0.9% drop in March. ANZ Job Ads for May also at 1130 Sydney.

Japan sees M3 Money supply data for May at 0850 Tokyo (2350 GMT) and the tertiary industry index for April at the same time, and later the May preliminary machine tool orders data (1500 Tokyo, 0600 GMT).

Overnight, the dollar traded higher against most major currencies on after yield differentials between U.S. and European debt widened due to diverging monetary policy paths on both sides of the Atlantic.

The European Central Bank's recent decision to loosen policy coupled with expectations for the Federal Reserve to wind down stimulus programs this year reflected in bond markets on Monday, which weakened the euro and fueled widespread demand for the dollar.

Elsewhere, data on Monday showed that euro zone investor confidence deteriorated unexpectedly in June despite the ECB's new measures to support growth and inflation.

The Sentix investor confidence index fell to 8.5 this month from 12.8 in May, confounding expectations for a jump to 13.2.

The dollar, meanwhile, continued to see support on solid U.S. unemployment data.

On Friday, the U.S. Labor Department reported that the economy added 217,000 in May, close to expectations for a 218,000 increase, after a 282,000 rise in April, whose figure was revised down from a previously estimated 288,000 gain.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 80.65.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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